Saudi Arabia’s Public Investment Fund (PIF) is poised to become a minority shareholder in the Selfridges department store chain by acquiring the stake previously held by the now-bankrupt Signa Group. According to a statement from Central Group, the current co-owner, PIF will obtain a 40% interest in both the real estate and operational segments of Selfridges. The Thai retail giant, Central Group, will retain a 60% ownership, and both entities will infuse new capital to bolster Selfridges’ financial health.
PIF has finalized a binding agreement to wholly acquire Signa’s shares in the chain, though specific terms have not been disclosed. This strategic move comes following the collapse of Central’s joint-venture partner, Signa, a real estate and retail enterprise established by billionaire Rene Benko. The group’s main property divisions are entangled in insolvency proceedings in Austria, triggered by a significant rise in interest rates that exacerbated the group’s heavy debt burden late last year.
“We are delighted to forge this partnership with Central Group in Selfridges Group, one of Europe’s most esteemed luxury department stores,” stated Turqi Al-Nowaiser, deputy governor and head of PIF’s international investments division. “This alliance enables Selfridges Group to strengthen its standing as a premier retail destination.”
Selfridges is among several ventures Central undertook with Signa. The Austrian group’s downfall has sparked a reassessment and restructuring of multiple investments. Central has assumed control of the operations of the Swiss luxury department store chain Globus, along with KaDeWe’s operating entity and flagship store in Berlin.
Previously, PIF held a 10% stake in Selfridges’ properties after acquiring a portion of Signa’s 50% stake through a syndicated deal with the Saudi sovereign wealth fund.
The Selfridges Group manages 18 department stores across three countries, including Selfridges in the UK, De Bijenkorf in the Netherlands, and Brown Thomas and Arnotts in Ireland.
